LIBOR Index:
This disclosure describes the features of an adjustable rate mortgage (ARM) program offered by Orlando Financial Center.

How Your Interest Rate and Payment Are Determined ?

After the first five, or seven years of your loan, as applicable, your variable interest rate will be based on an index plus a margin. Please ask your Mortgage Loan Consultant for our current interest rates and margins.

The “index” is the average of inter-bank offered rates for one-year U.S. dollar-denominated deposits in the London market (“LIBOR”), as published in The Wall Street Journal.

Your initial interest rate is not based on the index used to make later adjustments. If the initial interest rate is below the sum of the then-current index plus margin (“the fully indexed rate”), then the initial interest rate will be a “discounted” interest rate. If the current interest rate is above the fully indexed rate, then it will be a “premium” interest rate.
Please ask your Mortgage Loan Consultant for the amount of our current interest rate discounts and premiums.

Your payment for the first five, or seven years of the loan, as applicable, will be based on the initial interest rate, the loan amount, and the loan term.

How your Interest Rate can change ?

Your initial interest rate will be fixed for the first five or seven years, as applicable, with annual adjustments thereafter.

Limits on the annual and lifetime adjustments are reflected in the chart below.

Your interest rate will be rounded to the nearest eighth of one percent (1/8%).